27 agriculture and land use - demand for and supply of agricultural commodities
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Land Use Policy 26S (2009) S230S242
Contents lists available at ScienceDirect
Land Use Policy
j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / l a n d u s e p o l
Agriculture and land use: Demand for and supply of agricultural commodities,
characteristics of the farming and food industries, and implications for land use
in the UK
A. Angus a,, P.J. Burgess a, J. Morris a, J. Lingard b
a Cranfield University, Cranfield, Bedfordshire MK43 0AL, United Kingdomb School of Agriculture, Food and Rural Development, Newcastle University, Newcastle upon Tyne NE1 7RU, United Kingdom
a r t i c l e i n f o
Article history:
Received 21 September 2009
Accepted 25 September 2009
Keywords:
Agriculture
Land use
Farm incomes
Food commodity prices
Agri-environment
a b s t r a c t
Agriculture is the largest type of land use in the UK, accounting for about 77 per cent of the total area,
compared with an average 50 per cent for the EU27. But in common with most high-income countries,
agricultures contribution to UK GDP and employment is low, at about 0.5 and 1.8 per cent, respectively,
although the regional importance of the sector (and its associated food and farming industries) varies
considerably.
Of the 17.5 million ha used for agriculture, about 28 per cent is allocated to crops, and 67 per cent
is grassland. The grassland includes 4.4 million ha of sole-owned rough grazing and 1.1 million ha of
common land in mainly upland disadvantaged areas, primarily used for beef and sheep production.
This has a major influence on land use, especially in the northern and western parts of the UK.
From the 1930s until the mid-1980s, UK policy promoted increases in agricultural productivity to feed
the nation from its own resources. An array of income and production support measures encouraged
intensive farming, including a relative switch to arable farming in eastern areas. Since the early-1990s,
policies havesoughtsimultaneously to makeUK agricultureinternationally competitiveand environmen-
tally benign. Thesepolicies,evident in theAgenda 2000 Reforms of theCommon AgriculturalPolicy, pointthewayforwardfor thefuture.It islikely that a greater distinctionwill emergebetweenpolicies to protect
natural resourcesand enhancethe flow of non-market ecosystemservicesfrom ruralland, andagriculture
and food policies intended to encourage an appropriate proportion of national food requirements to be
met from domestic sources.
It seems likelythat over thenext 50 years, theUKs land area will be required to deliver an increasingly
diverse range of private and publicgoodsto meet growing human needs and aspirations. This will require
a balance of policy-driven goals and market forces. It will also need a much improved understanding of
the trade-offs between food production and environmental goals and of the institutional arrangements
required to achieve a balance of economic, social and environmental outcomes.
2009 Queens Printer and Controller of HMSO. Published by Elsevier Ltd. All rights reserved.
Introduction
Agriculture is the largest single type of land use in the UK.In 2008, approximately 77 per cent of the total area of the UK
(17.5million ha) was used for agricultural purposes (Defra, 2008c).
This compares with 50 per cent in the EU27, and 54, 47 and 50 per
cent for France, Germany and Spain, respectively (Eurostat, 2009).
While the Government Office for Science commissioned this review, the views
are those of the author(s), are independent of Government, and do not constitute
Government policy. Corresponding author at: Natural Resource Department, Building 42a, Canfield
University, Bedfordshire MK43 0AL, United Kingdom. Tel.: +44 1234 750111.
E-mail address: [email protected](A. Angus).
This means that UK rural land use, and the UK landscape in
lowland and upland areas, are largely the products of agricultural
management, which has evolved over many centuries. They areparticularly the result of government agricultural policies over the
past 70 years. These originally focused on food production and
have only more recently given prominence to environmental pro-
tection and the wide range of environmental services provided by
farmed areas. Likewise, future land use in the UK will be affected
by change in the food and farming sectors, and by priorities in the
management of natural resources and the environment.
This paper reviews the main changes in UK agricultural land
use and farming systems over the last 50 years and the underlying
causes and effects. The factors shaping the demand for and sup-
ply of agricultural commodities are explored, including changes in
0264-8377/$ see front matter 2009 Queens Printer and Controller of HMSO. Published by Elsevier Ltd. All rights reserved.
doi:10.1016/j.landusepol.2009.09.020
http://www.sciencedirect.com/science/journal/02648377http://www.elsevier.com/locate/landusepolmailto:[email protected]://localhost/var/www/apps/conversion/tmp/scratch_13/dx.doi.org/10.1016/j.landusepol.2009.09.020http://localhost/var/www/apps/conversion/tmp/scratch_13/dx.doi.org/10.1016/j.landusepol.2009.09.020mailto:[email protected]://www.elsevier.com/locate/landusepolhttp://www.sciencedirect.com/science/journal/02648377 -
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A. Angus et al. / Land Use Policy 26S (2009) S230S242 S231
agriculturalpolicy andmarketsand theorganisation of thefarming
and food industries. Forecasts of agricultural landuse are reviewed,
providing perspectives on how the main drivers of change will
affect future land use in the UK. Although they are relevant to this
discussion, technological change and climate change are not dis-
cussedhere.The interested readeris directed to Burgess and Morris
(in press) and Rounsevell and Reay (in press).
UK agricultural land use and economic importance
Current UK agricultural land use
Table 1 shows current agricultural land use in the UK. About
28 per cent of the UK agricultural area is associated with arable
cropping, including fallow land, and about 67 per cent with grass-
land, mostly permanent pastures. Farm woodland and other land
occupies about 6 per cent of the total agricultural area. In 2002,
8.7 million ha (42 per cent of the agricultural area) of UK upland,
defined as land more than 240 m above sea level, was classed
as less favoured. These areas as regarded as disadvantaged from
an agricultural and economic perspective and are mostly grazed
for extensive agricultural production. Farmers there have received
additional income support (Defra, 2002). Table 1 also shows agri-
cultural land use for England, where arable crops and grassland
account for almost equal proportions of the total land area.
The proportion of the land area used for agricultural purposes
has declined steadily over the past century, mainly in response to
demands for other uses, predominantly urban and, in some areas,
forestry. In England (Fig. 1), agricultural land declined by about 12
Table 1
Agricultural land uses types in the UK and England in terms of area and proportion
of the total agricultural area (Defra, 2008a,c).
Land use UK England
(000 h a) (%) (000 h a) (%)
Crop cultivation 4,740 27 4031 43Bare fallow 195 1 159 2
Temporary grass under 5 years old 1,141 7 636 6
Grass over 5 years old 6,036 35 3428 37
Sole right rough grazing 4,359 25 578 6
All other land and Woodland 993 6 505 6
Total agricultural land 17,464 100 9339 100
Common land for grazinga 1,238 428
Total land used of agricultural purposes 18,702 9767
a Common land is not classified as agricultural land.
Fig. 1. Agricultural land use in England for selected years between 1900 and 2008.
Fig. 2. Agricultural land use in Wales for selected years between 1900 and 2007.
per cent over the period 19002008, and by about 7 per cent since
1950 (MAFF, 1968; Defra, 2008a). This equates to a total decline of
700,000ha, equivalent to 6500 ha per year leaving agriculture in
England.
From the1950s through to themid-1980s, reductions in farmed
areas were more than offset in output terms by increased yields,
associated with improvements in crop and livestock genetics,
nutrition, and health and land improvements such as drainage (see
Burgess and Morris, in press). Wheat yields per hectare and milk
yields per cow doubled during the period 19602000. Agricultural
systems tended to intensify in areas where they were most suited.
There wasa netchangefrom grasslandto arableproduction in Eng-
land and vice versa in Wales (Morris, 1992; Morris et al., 2005)
(Fig. 2). UK total agricultural output (weighted by value) rose by
almost 180 per centbetween the mid-1950s and a peak in the mid-
1980s, after which it declined slightly, mainly in response to policy
changes.
Table 2 shows changes in the distribution of crop and grassland
areas in theUK between 1995 and2008, reflectingthe relative prof-
itability of farming as a whole and of particular crop and livestock
enterprises. The decline in farmed areas, especially in arable crop-ping prior to 2000, reflects falling real product prices, anddeclining
farm incomes, which caused farmers to leave the industry. As the
Policy Commission on the Future of Farming and Food (2002) com-
mented at the time, landabandonment seemed a possible outcome.
However, in the short term, agriculturalland andotheragricultural
assets, including farmer skills, have limited alternative uses. This
results in supply-side inertia whereby farmers continue to operate
unprofitable businesses because economic adjustment is painful
and resource specificities prevent movement to non-agricultural
uses. More recently, the strengthening of crop prices, especially
for cereals and oilseeds and the curtailment of the set-aside pro-
gramme that took cereal land temporarily out of production, have
led to an increase in the areas of cereals and oilseeds. By compari-
son, sugar beet plantings have declined in response to falling sugarsupport prices, while relatively low livestock prices and high feed
prices have reduced the profitability of grassland farming. Some of
the increase in the grassland area since 2005 shown in Table 2 is
attributable to increased registration of smallholders under the EU
single farm payment scheme.
The underlying message here is that farmers are responsive
to prices, whether market- or policy-driven. They are particularly
responsive to upward movements in prices and changes in relative
commodity prices. As we have seen, they are much less responsive
to declining prices because of the inherent immobility of agricul-
tural assets, including land, and the lifestyle and taxation benefits
associated with farming.
Thus for most of the postwar period of declining commodity
prices in real terms, the farming industry has faced a continuing
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Table 2
UK agricultural land use (000 ha) and livestock numbers (thousands) for selected periods between 1979 and 2008.
Crops Average of 19791981 1990 2000 2008 Proportional change from
19791981 to 2008 (%)
Wheat 1,435 2,014 2,086 2,080 45
Barley 2,335 1,518 1,128 1,032 56
Oats 142 107 109 135 5
Other cereal crops 20 21 26 27 35
Oilseed rape 97 390 332 598 516Sugar beet not for stockfeeding 212 194 173 120 43
Peas for harvesting dry and field beans 78 216 208 148 90
Linseed 71 16
Other crops 198 132 192 269 36
Potatoes 200 177 166 144 28
Horticulture 270 208 172 170 37
Grassland
Permanent grass 5,145 5,316 5,363 6,036 17
Temporary grass 1,933 1,606 1,226 1,141 40
Rough grazing 5,093 4,965 4,445 4,359 14
Set-aside 0 72 567 0
Common rough grazing (estimate) 1,213 1,236 1,228 1,238 2%
Total agricultural area 18,899 18,884 18,311 18,702 1%
Livestock
Total cattle and calves 13,384 12,059 11,135 10,107 24%
Dairy cows 3,237 2,848 2,336 1,909 41%Beef cows 1,481 1,632 1,842 1,670 13%
Total sheep and lambs 31,163 43,799 42,264 33,131 6%
Total pigs 7,836 7,449 6,482 4,714 40%
Total fowl 125,712 124,615 154,504 166,200 32%
challenge of structural adjustment. It is these economic forces that
have caused the drift from the land of agricultural labour which
occursin alldeveloped economies, mainlybecause as general pros-
perity increases, people tend to spend a declining proportion of
their extra income on raw food.
In the livestock sector, the combination of improved produc-
tivity (Burgess and Morris, in press), with the imposition of milk
quotas, the abolition of the Milk Marketing Board in 1993, poor
financial returns, and static or decreasing demand have caused a
41 per cent decline in dairy cows between 19791981 and 2008
(Table 2). Similarly, there has been a reduction in the number of
beef cattle following the BSE crisis in the late-1990s and the reduc-
tion and eventual removal of specific beef production incentives
in 2005. The UK sheep flock peaked in 1992 at 44 million, because
of a favourable EU sheep meat regime. Following the end of this
regime, sheep numbers declined to 33 million in 2008.Pig numbers
have decreased rapidly over the period shown in Table 2, largely
as an effect of high feed prices, disease outbreaks and the cost of
implementing new welfare standards for pigs. The rapid increase
in poultry is a result of changing diets, with white meat becoming
more popular than beef and lamb with UK consumers.
The pattern of agricultural land use is also influencedby a com-
bination of climate, soils and topography. In England and Wales,
this results in a relative concentration of grassland and livestockfarming in the north and west, and arable farming in the east and
south (Fig. 3). Horticulture, including the production of high-value
vegetable and salad crops, is mainly concentrated in areas of peat
or light mineral soils, usually involving irrigation and controlled
drainage.These aremainly in East Anglia, theWest Midlands,south
west Lancashire, and south Yorkshire.
The economic performance of UK agriculture and implications for
land use
In line with other EU and OECD member states, agricultures
share of UK national economic output and employment has
declined over time as overall prosperity has increased. In 1900,
UK agricultures share of GDP was about 11 per cent ( National
Statistics, 2003). In 2007 thefarming sectorin theUK accountedfor
5.5 billion gross value added, equivalent to about 0.5 per cent of
total UK GDP. Employment in farming provided 531,000 full-time
equivalent jobs, about 1.8 per cent of the UK workforce. As a com-
parison, agricultures share of GDP in the EU-15 and in the US were
1.7and1.4 percent,respectively,in 2002(Normile and Price, 2004).
Crop outputs excluding horticulture totalled 3.5 billion in
2007. They form 22 per cent of the total output of UK agriculture,
which was valued at 15.7 billion, excluding single farm payments
and subsidies of 2.9 billion (Defra, 2008a,b,c,d,e). This output
occurs on about 27 per cent of the crop and grass area excluding
roughgrazing. Horticulture at 2.3billionaccountsfor about15 per
centof total output onabout 1.3 per cent ofthe cropand grass area,
confirming the relatively high-value per hectare of vegetable and
fruit production. Meat production (e.g. cattle, sheep,pigs andpoul-
try) contributes about 4.4 billion or 28 per cent of the total output
Fig.3. Cerealcrops andgrasslandas a proportion ofagriculturallandacrossEngland
(Defra, 2008a).
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A. Angus et al. / Land Use Policy 26S (2009) S230S242 S233
Table 3
Thenumber ofUK agriculturalholdings (000) within foursizegroupingsfor selected
years between 1990 and 2007.
Size (ha) 1990 1993 1995 1997 2000 2003 2005 2007
>50 81.0 79.9 80.1 78.4 75.5 75.4 74.5 74.0
2050 60.7 58.9 56.5 55.4 47.8 45.0 46.7 46.5
520 67.9 67.6 65.6 63.1 56.1 56.7 58.7 60.1
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Table 5
Area of uncropped land (000 ha) in the UK for selected years between 1985 and
2008.
1985 1990 1995 2000 2008
Bare fallow 41 68 43 37 195
Set-aside 0 72 734 495 0
Total uncropped 41 140 777 532 195
Farm woodland 500 750
Source: MAFF (1989), Defra (2008a).
ers to grow oilseed and protein-rich crops, such as oilseed rape,
linseed and pea and bean crops.
These successive policy changes have impacted significantly
on the UK landscape. The drive for food production between
1940 and 1984 had led to substantial areas of permanent pasture
being ploughed and drained, usually with grant support. The rapid
increase in sheep numbers in both upland and lowland areas dur-
ingthe 1980s brought aboutby ewesubsidies wascurtailed in 1992
by regional ceilings. The increased support for protein and oilseed
crops has meant that oilseed rape and field beans have become
important new crops in the UK landscape.
The introduction of compulsory set-aside in 1992 led to alarge increase in the fallow arable land in the UK. Conversely
the removal of compulsory set-aside in 2008 in response to an
increase in cereal prices caused a rapid decline in the area set-
aside. The area of bare fallow increased rapidly in 2008 because
land voluntarily left as set-aside was reclassified as bare fallow
(Table 5).
From food supply to ecosystem services
During the 1970s and 1980s, numerous commentators high-
lighted the negative environmental effects of intensive farming
(Nature Conservancy Council, 1977; Shoard, 1980; Body, 1982),
including loss of habitats andwildlife, soil erosion andwater pollu-
tion. In response to this and to pressure from the UK, the EuropeanCommunity accepted the concept of Environmentally Sensitive
Areas in 1985, and a broad suite of accompanying measures
was introduced in the CAP reform of 1992 to promote the agri-
environment and farm woodlands. Through a range of schemes,
participating farmers were paid for managing a proportion of
their land to produce ecosystem services rather than food. This
included support for farmers to moveland fromproductive agricul-
ture into management practices that supported local biodiversity,
such as the Environmentally Sensitive Areas (ESA) and the Coun-
tryside Stewardship (CS) schemes. Incentives were also offered for
farmers to switch to organic systems, and for the afforestation of
agricultural land through initiatives such as the Farm Woodland
Scheme (FWS), the Woodland Grant Scheme (WGS), and the Farm
Woodland Premium Scheme (FWPS).Since 2000, European Union support for the rural sector has
been delivered through two main mechanisms. Pillar I involves
support for agriculture and Pillar II provides support for ruraldevel-
opment, including agri-environmental interventions. In 2003, the
CAP reformed key agricultural subsidies under Pillar I (such as the
Arable AreaPaymentand the Beefand SheepPremiums in England),
which were linkedto production with a SingleFarm Payment (SFP).
This payment was not linked to a particular type of production, but
did require cross-compliance, an adherence to EU environmen-
tal, food safety, animal welfare standards and regulations, and the
need to keep farmland in Good Agricultural and Environmental
Condition. This is defined at a national level, andincludes soil pro-
tection, maintenance of soil organic matter and soil structure, and
maintenance of habitats and the landscape.
Agricultural commodity prices, and the incentives for agricul-
tural production in the UK, are now largely determined by world
market conditions and farm and rural income support is decou-
pled from farm production levels. This shouldprevent thewasteful
and inefficientbuild-up of agricultural surpluses whichbroughtthe
CAP into disrepute in the 1980s.
Pillar II of the CAP relating to rural development includes
agri-environmental and afforestation measures. Separate rural
development programmes exist for England, Scotland, Wales and
Northern Ireland. Since 2005, the agri-environmental measures
for England include Environment Stewardship which is steadily
replacing the ESA and CS schemes. In England in 2008, 5.3 million
ha were under environmental stewardship, 6 per cent of which
was in the higher tier. The total land area under agri-environment
schemes in theUK wasabout8.7million ha in 2008,compared with
only 175,000ha in 1992.
Over time, the proportion of total agricultural funding allocated
to the Single Farm Payment is being reduced by the modulation
of funds to rural development measures, in other words from Pillar
I to PillarII. Farmers arenow paid to manage their land accordingto
a set of rules,regardless of what or how much is produced on-farm.
This marks a shift in public financial support from the production
of food and fibre to the conservation of natural resources and the
environment.
Agricultural prices, farm incomes and land values
World market agricultural prices have fallen in real terms for
much of thepast70 years,withthe exceptionof shortlivedspikes in
the early-1970s, the early-1990s and more recently the 20072008
period, mainly caused by supplydisruption at a globalscale (Piesse
and Thirtle, 2009). Agricultural prices for UK farmers have mir-
rored these trends, especially since the early-1990s, but have been
modified by the rate of farm support within the European Union.
Fig. 4 shows price trendsfor selected major commodities forthe
UK from 1988 to 2008. Over this period, prices were relatively low
between 1998 and 2004 before the recent price spike (Piesse andThirtle, 2009). Formanyproducts,priceshavereturnedto thelevels
experiencedin early- to mid-1990s, when prices increased because
of a weak pound relative tothe currency of other EU competitors,as
well as strong food demand from Asia (Defra, 2009b; USDA, 2009).
The combination of a stronger pound, falling demand in the wake
of the Asian financial crisis and a liberalisation of EU agriculture
combined to depress prices from the late-1990s until 2005.
Fig. 5 shows how farm incomes have been affected
by price variations, showing volatility around a gener-
ally declining trend. In 2008, Total Income from Farming
Fig. 4. UK agricultural price index for selected products 19882008. Source: Defra
(2008c).
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A. Angus et al. / Land Use Policy 26S (2009) S230S242 S235
Fig. 5. Total Income from Farming (TIFF) 19732008. Source: Defra (2009a,b,c).
(TIFF) was about 60 per cent lower in real terms than
in 1973.
Recent changes in the value of land
Agricultural land prices tend to reflect the profitability of farm-
ing, including the effects of subsidies and income support. But in
recent years, distortions in UK land markets have kept agricultural
land prices at levels much higher than their agricultural income
earning capacity would imply. Factors at work here include lim-
ited offerings of land for sale (typically less than 0.2 per cent of
the total land area each year), strong demand for small parcels
of agricultural land from urban dwellers, and tax advantages
of land ownership. Fig. 6 shows how the sale value of agricul-
tural land rose in the early-1990s during a period of relatively
favourable commodity prices (Fig. 4) and farm incomes (Fig. 5)
but levelled off and remained stable between 1996 and 2004,
even during this period of unprecedented low prices and incomes.
Where agricultural land included a house, the value per hectare
of that land increased by 60 per cent between 1995 and 2004(Fig. 6).
More recently, the value of agricultural land in England and
Wales has more than doubled between 2004 and 2009 (Fig. 7),
partly in response to recent increases in food commodity prices
and farming profits. In 2009, prices for agricultural land in Eng-
land and Wales with vacant possession are about 13,00015,000
per hectare for arable land, reflecting the presence of keen local
buyers as much as the quality of agricultural land. RICS (2009)
reported an increase in 2008 in the number of purchases of land
by adjacent family managed farms in order to maintain economies
Fig. 6. Agricultural land values in England (19932004) at 2007 prices (Defra,
2008c).
Fig.7. Value of freeholddairy, arableand hillland withoutbuildings in Englandand
Wales (Valuation Office Agency, 2009).
of scale and benefit from the exemption of farm land from
inheritance tax.
Power relations in UK food and farming
In analysing competition in particular industries, Porter (1998)
identifies five sources of competition. The key areas in the agri-
cultural supply chain relate to the buyer power of consumers and
supermarkets, the power of agricultural supply companies, inter-
national competition including the role of biofuels, new entrants,
and rivalry between existing agricultural businesses (Fig. 8).
Buyer power
The final buyers of agricultural products are consumers. How-
ever, their choices are increasingly mediated through a limited
number of supermarkets. The generic demand for food in the UK
is relatively unresponsive to changes in prices, it is price inelas-
tic (Lechene, 1999; Tiffin and Tiffin, 1999) (Table 6). Price changes,
whether up or down, bring about proportionately small changes in
the quantity of food purchased. For instance, a 1 per cent increase
in the price of fresh fruit would cause an 0.29 per cent fall in
the quantity demanded. Conversely, a 3.4 per cent fall in price
(1/0.29) is needed to raise demand by 1 per cent. Because of this
relatively constant and inelastic demand, farmers can experience
considerable variation in prices and incomes, for example when
year-on-year changes in weather patterns affect production. Oscil-
lating and unstablefood prices, and the importance of securing food
supplies for Britains industrial workforce, were the main reasons
for the Government introducing Agricultural Marketing Boards in
the 1930s.
The demand for food is also income inelastic, that is, expendi-
ture on raw food as a whole does not keep pace with increases inincome. Drawing on the Household Food Survey, Lechene (1999)
suggests that a 1 per cent increase in average income will increase
Fig. 8. Five competitive forces within in the UK agricultural land use sector.
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Table 6
Own price, income and cross-price elasticities of demand for selected food products consumed in UK homes.
Own price
elasticity
Income
elasticity
Cross-price elasticitya
Carcase
meat
Other meat and
meat products
Milk and
cream
Bread Fresh
fruit
Fresh green
vegetables
Carcase meat 0.69 0.2 0.26 0.05 0.12 0.17 0.11
Other meat and meat products 0.52 0.19 0.53 0.14 0.11 0.11 0
Milk and cream
0.36 0.05 0.04 0.38
0.14
0.27
0.02Bread 0.4 0.12 0.07 0.03 0.07 0.1 0.05
Fresh fruit 0.29 0.3 0.11 0.03 0.14 0.1 0.04
Fresh green vegetables 0.66 0.27 0.02 0 0 0.02 0.01
aFor entries under cross-price elasticity: entry on a row is the cross-price elasticity with respect to the good in the column. For instance, the cross-price elasticity of carcase
meatin respect to other meatand meatproducts is 0.26. A positivecoefficient indicatesthat a productacts asa substitute foranother; forinstance, anincreasein carcase meat
pricecauses people to switch to consumptionof other meats andmeat products.A negativecoefficientfor cross-priceelasticity indicatesthat theproducts arecomplimentary;
where the goods are consumed together. For instance, an increase in price causes a decline in quantity demanded (source: Lechene, 1999).
total food demand by 0.2 per cent. But the increase in demand
will not be uniform across all categories of foods and all income
levels (Defra, 2008e). Low-income households tend to buy more
bread and cereals, milk, cheese and eggs, sugar and confectionery
but less meat, vegetables, fruit and other foods than more affluent
families. Increased average income, together with increased food
choices and changing tastes and lifestyles, were associated with a30 per cent fall in milk and dairy consumption over the past 30
years (Defra, 2008b). Bread purchases have decreased by 15 per
cent and fresh potatoes by 27 per cent in the past 10 years ( Defra,
2008b) while purchases of fruit and vegetables have increased by
8 per cent over the same period. Quantities of fruit and vegetables
purchased by all households and by low-income households have
both risen by 9 per cent since 2001 (Defra, 2006c).
Similarly, fresh red meat sales have fallen by 40 per cent over
the past 30 years, but have remained steady over the past decade.
This reflects theimpact of changing food tastesand lifestyles. There
have been large fluctuations in the type of meat bought because of
health concerns, such as BSE, but in general meat consumption has
remained relativelysteady.The majorchange has been the increase
in poultry consumption, whichhas surpassedconsumption of othermeats in the UK since 2000 (Foster and Lunn, 2007). Recent con-
cerns about the growing incidence of obesity have prompted calls
for healthier eating, with implications for the balance of livestock,
fruit and vegetables products in the national diet (Foresight, 2007).
Although income elasticity is low for raw, unprocessed food
(Table 6), it is much higher for total food expenditure including the
convenience and recreational components provided by the food
processing and catering sectors. Farmers can offset the disadvan-
tages of the market place for raw, farm-gate food by adding value
by movingup thesupply chain,by undertaking processingor direct
sales themselves, or by focusing on niche, quality produce rather
than bulk produce.
There isalso anincreasing trendtowardsdemand forfoodwhich
meets high ethical standards and animal welfare considerations,which protects the environment, and which respects the rights
of people involved in food production, particularly in developing
nations. Defra (2007) shows an increasing demand between 2000
and 2007 for local food and for food from organic, free range and
other systems orientated to animal welfare, as well as for fair trade
foods. Over a third of sales of ethical foods are now organic. Sales
of organic foods increased by nearly 20 per cent between 2005 and
2006 to a market value of 1.7 billion (NFU, 2008). It is unclear as
yet how these trends will affect aggregate land use, but increas-
ing quantities of organic and food from animal welfare systems
wouldrequiremore landthan conventional agricultural production
systems because of relatively lower yields.
A number of changing demographic factors, some of them
counteracting each other, could influence future demand for food
(National Statistics, 2009). Increased participation in the workforce
by women, decreasinghouseholdsize and more individualistic eat-
ing patterns are driving demand for convenience foods and meals
with smaller portions (Buckley et al., 2007). Conversely, an age-
ing population with more pensioners who have low incomes but
plenty of time to cook, could increase the demand for raw food
and for cheaper options. Renewed connectedness between peo-ple and food has increased interest in local foods, encouraging
farmers markets, and a resurgence in allotments and urban agri-
culture. Concerns about rising food prices, however, does not fit
comfortably with the finding that 30 per cent of food purchased
by households is thrown away, and that most this waste (19 per
cent of purchases) could have been avoided (WRAP, 2008; Cabinet
Office, 2008). Losses in the catering sector and the food chain
as a whole would increase this estimate of total loss ( Lundqvist,
2008).
Over thepasttwo decades, marketpower hasmovedfromfarms
to the retail sector and consumers (IAASTD, 2009). Large super-
markets have delivered increasing convenience and choice to the
sector. The number of product lines in supermarkets has increased
from about 5000 in the 1970s to over 40,000 currently (Foster andLunn, 2007). They have taken an increasing share of the UK food
market (Frances and Garnsey, 1996; FAO, 2005), out-competing
smaller and more specialist food retailers. Defra (2006c) reported
that approximately 75 per cent of food sales were made by super-
markets or superstores and only 7 per cent attributed to small
traditional stores. The supermarket sector is also highly concen-
trated. Four companies account for approximately 74 per cent of
all supermarket food sales.
As a consequence, large supermarkets exert significant power
over their suppliers, including farmers (Dobson et al., 2003). The
OECD (2006) explained the process of retail market capture and
cited several practices that supermarkets use to exert market
power, such as changes in contract conditions at short notice,
breaches in contract, late payments and buy-back clauses forunsold products. Lloyd and Morgan (2007) concluded that these
practices cause supermarket and farming profit margins to diverge.
In 1988, farmers received 47 per cent of the final market value
of retailed fresh foods, but by 2008 this had fallen to 37 per cent
(Defra, 2008c). However, others point to an improvement in the
relationships associated with dedicated supply chains, such as
supermarket-operated quality assurance and traceability schemes
for livestock and vegetable produce. The share of farm-gate output
in thefinalretail price of differentforms of food is also variable,typ-
ically being 4051 per cent for most fruits and vegetables, 4750
per cent for beef and lamb, and 35per cent for milk (Defra, 2008c).
Crude price comparisons can also be misleading because differ-
ent amounts of resources are committed to marketing different
products and adding value to them.
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McCulloughet al. (2008), WorldBank (2007) and IAASTD (2009)
report that the dominance of supermarkets in the agri-food chain
for high-value produce tends to favour larger producers. In some
cases, farmers have responded to the dominance of supermarkets
by creating co-operative groups, farmer wholesale companies or
larger farm enterprises. This is likely to encourage further increases
in average farm size or more collaborative ventures, as produc-
ers seek economies of scale in production, and in the case of fresh
produce, economies of marketinginto the supermarket-dominated
supply chain.
Rivalry between agricultural producers
Withalmost 200,000farmersproducingmainly bulk,low-value,
high volume, high transportcost, commodities, thereis little rivalry
between producers themselves. Most rivalry is associated with
gaining and maintaining market outlets to supermarkets and pro-
cessors for high-value produce. There is also rivalry at the national
scale between domestic production and imports.
New entrants
Competition from new entrants in the agriculturalsector is low.
The returns from agricultural production do not justify the invest-
ment in purchasing or renting agricultural land. In fact the issue is
not competition from new entrants into the sector, but the loss of
commercial farmers and agricultural land from it. Existing farmers
can find it attractive to release the capital in their land by sell-
ing it for non-agricultural uses such as housing development, or
converting it for amenity use such as paddocks for horses.
Supplier power
Agriculture is a primary industry and is less exposed to changes
in input costs than many other industries. However, the profitabil-
ity of some sectors, pig and poultry production in particular, is
dependent on the supply of cheap animal feed. In the past century,
agriculture has also become reliant on cheap energy, for run-
ning agricultural machinery and for nitrogen fertiliser production.
Between 2005 and 2008, prices for fertilisers and soil improvers inthe UK increased by 270 per cent (Defra, 2009c), in part a result of
high energy prices but also because of a lack of competition in the
domestic fertiliser supply sector.
A long-term increase in the price of fossil fuel will affect the
viability of current energy-intensive farming systems that are
dependent on large inputs of inorganic fertilisers and pesticides,
on andthe use of farm machinery. Energyefficiencyconsiderations
may encourage less intensive farming systems and lower yields,
implying greater agricultural land use to maintain total agricultural
output (Sustainable Development Commission, 2007).
International competition
A key consideration for UK agricultural land use is the capacity
of UK agriculture to compete on the international market. Systemsthat are internationally competitive can secure additional income
from selling in international markets; systems that are not com-
petitive are likely to face competition from imports. Since 2002,
the Common Agricultural Policy has sought to make EU, including
UK, agriculture internationally competitive, while simultaneously
ensuring food security though a balance of domestic and foreign
sourcing.
Atthe globalscale, demandfor food is closely linkedto increases
in the economic prosperityof populations. Between 2004and 2006,
22 of the worlds 34 most food-insecure countries experienced
gross domestic product increases of 516 per cent (IFPRI, 2007),
with a resulting shift from basic staples such as cereals to more var-
ied, protein-rich diets, especially vegetables, fruits, meat, dairyand
fish. Between 19641966 and 19971999, consumption of meat
per capita developing countries increased by 150 per cent, and of
milk and dairy products by 60 per cent (FAO, 2005). Milk and dairy
consumption is expected to rise by 1 per cent per year through
to 2019 (Trostle, 2008). By 2030, it is forecast that per capita con-
sumption of livestock products could rise by a further 44 per cent
from current levels(WHO,2003). But demand for otheragricultural
commodities could decline. IFPRI (2007) predicts that as incomes
increase in South Asia, there will be a 4 per cent decline in rice
consumption between 2000 and 2050, while the consumption of
vegetables is projectedto increase by 70per cent, andconsumption
of meat, eggs, and fish is projected to double.
The growing global demand for meat products has implications
for the grain and protein feed markets. Trostle (2008) suggests
that producing 1 kg of chicken, pork and beef requires to 2.6, 6.5
and 7 kg of maize feed, respectively. So the increase in demand
for meat will have far-reaching consequences for the demand for
cereals and coarse grains for animal feeds. Analysis suggests that
other countries and regions than the UK may have comparative
advantagesin the production of bulkagriculturalcommoditiessuch
as wheat, plant oils and beef. However, these potentials may be
threatened by climate change, and the UK may be able to gain
advantage in markets that differentiate on food quality rather than
price. Strong international prices for commodities could maintain
a high demand for land use for agriculture in the UK, in substi-
tuting for expensive imports and in supplying high-value, locally
sourced, quality-assured products. Participating in such markets
will require high levels of knowledge, skills and technology in UK
farming systems.
A key factor in the international market for food is the impact
of bio-energy. The EU and the US both have targets for the mini-
mum proportion of conventional road transport fuel to be met by
renewable sources (Sugden, 2009; Somma et al., in press). Several
studies have estimated the amount of land required to achieve the
EU renewable transport fuel target of 10 per cent. Upham et al.
(2009) estimated that meeting biofuel targets with oilseed rape
would need 600,000 ha of current agricultural land and an addi-
tional 840,000ha of land which is now unused. To meet thesetargets from a sugar beet feedstock would require 10 per cent
of UK arable land and from straw would require 45 per cent of
UK arable land. There appears to be a direct link between biofuel
demand and the price of crude oil, creating a trade-off between
food and fuel production (Senauer, 2008). Fossil fuel prices are
expected to increase in real terms in future, thus maintaining the
demand for biofuels (Davis, 2009). However, it is likely that atten-
tion will switch from conventional crops to second generation
biomass crops such as miscanthus and willow, much of which can
be grown on poorer land, although they can be water-intensive
(Cannell, 2005).
Forecasts for land use
The sections above have reviewed the main drivers of UK agri-
cultural change, citing evidence of the way in which they have
shaped current land use and how they may change land use in
the future. The main issue is an emerging conflict over agricul-
tural land use forfood, fuel andecosystemservices. There aresome
complementarities in the production of these separate outputs, but
competition is more commonly the case, and it will be necessaryto
establish the significant trade-offs. However, it is difficult to pre-
dict the future conditions for agriculture. The prices of all main
commodities have shown much volatility in recent years (Fig. 9).
FAO and OECD (2008) forecasts suggest that the prices for the UKs
major agricultural products will remain strong to 2017 (Fig. 9).
This reflects growing food andfuel demand andgovernment policy
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S238 A. Angus et al. / Land Use Policy 26S (2009) S230S242
Fig. 9. World price for wheat, oilseed, and butter as recorded from 1992 to 2008
by OECD-FAO, and from 2009 to 2018 as predicted by OECD-FAO in January 2009
(OECD, 2009).
interventions thathave reduced supply but enhanced environmen-
tal protection. Overall, long-term prices are predicted to remain
about 2530 per cent higher than 20032006 international lev-
els. Therefore, it is reasonable to predict a future where there is
strong demand for agricultural products, and where demand for
ecosystemservices including forestry production is also increasing.
Agriculture, multi-functionality and ecosystems
It is recognised that agricultures role in society extends beyond
theproduction of food andfibre andthat agriculturalpractices pro-
duce food alongside cultural and environmental services as joint
products (Hodge, 2007). Specifically, agriculture provides man-agement (for better or for worse) of renewable natural resources,
regulates hydrological flows, enhances landscape aesthetics, con-
serves biodiversity, and contributes towards the socio-economic
viability of rural areas (Renting et al., 2009). Many of these
services are not priced and appropriately valued within mar-
ket economies, and consequently such public goods must be
supported by government intervention. For this reason, policies
such as the agri-environment schemes discussed earlier, have
been devised to pay farmers for producing these valuable ser-
vices.
In this context, the multifunctional role of agriculture has
become a political issue, seen by some as a useful means of ensur-
ing the supply of important countryside goods, and by others as a
dubious mechanismfor covertly subsidising agriculture (Potter and
Tilsey, 2007). EU payments to farmers for the provision of a range
of countryside services, and the concept of multi-functionality,
have found resonance among some participants within the World
Trade Organization debate on agricultural market liberalisation. It
is expected that EU and UK policy will continue to target financial
support for agricultural practices that deliver countryside services,
rather than subsidising food and fibre production.
The concept of multifunctional agriculture accords with the
recognition that environmental policy needs to take an ecosys-
tems approach (Defra, 2007). Attempts to produce environmental
accounts for agriculture in the UK confirm the range of positive
and negative externalimpacts thatagriculture has on the environ-
ment (Prettyet al., 2000; Hartridge andPearce, 2001;Environment
Agency, 2002; Eftec, 2004). Estimatesfor 2007(JSACCU, 2008) show
that UK agriculture generatesa netpositive environmental value of
around 650 million per year, although this probably significantly
underestimates the value of managed landscapes. But agriculture
is also associated with damage from greenhouse gas emissions
estimated at 2.07 billion per year, or 37 per capita of the UK
population. Future UK government and EU policies are likely to
financially reward the provision of ecosystems by an incentives
approach to public good provision, and punish the production of
negative externalities such as pollutionand natural resource degra-
dation by punitive polluter-pays taxes.
Future agricultural land use: the case of England and Wales
A number of studies have explored alternative futures for agri-
culture in the UK, with implications for land use. An example of
how farming and land use could change as a result of changes
in the drivers affecting the demand for agricultural commodities
and land management is contained in Morris et al. (2005). Possible
future scenarios for agriculture in England and Wales were drawn
up through to 2050. These were based on those used by the Fore-
sight Programme (Berkhout andHertin, 2002; OST, 2002), in which
futures are distinguished in terms of social values and governance.
Four scenarios, World Markets (WM), Global Sustainability (GS),National Enterprise (NE) and Local Stewardship (LS) were used
to define possible agricultural futures, recognising the dominant
influence of the agricultural policy regime as a key driver of agri-
cultural change (Table 7). A Business as Usual case was included
to represent a continuation of the existing regime.
Informed by an analysis of historical trends, and drawing on lit-
erature andexpert opinion (Sylvester-Bradley and Wiseman, 2005;
Morris et al., 2005), estimates of crop and livestock yields were
derived for the scenarios. Commodity prices, the use of production
inputs including management expertise, farm size, and the adop-
tionof genetechnologywere allassumedto be positivelycorrelated
with yields, whereas input prices, environmental regulation, adop-
tion of organics and business uncertainty were perceived to have
a negative association with yields. These influencing factors were
Table 7
Links between foresight and agricultural policy scenarios.
Foresight scenario Agricultural policy scenario Intervention regime
Business as Usual (BAU) Baseline Moderate: Existing price and income support, export subsidies, with selected
agri-environment schemes
World Markets (WM) World Agricultural Markets (without CAP) Zero: Free trade: no intervention: entirely market-driven
Global Sustainability (GS) Global Sustainable Agriculture (Reformed CAP) Low: Market orientation with targeted sustainability compliance
requirements and programmes
National Enterprise (NE) National Agricultural Markets (Similar to pre-reform CAP) Moderate to High: Price support and protection to serve national and local
priorities for self-sufficiency, limited environmental concern
Local Stewardship (LS) Local Community Agriculture High: Locally defined support schemes reflecting local priorities for food
production, incomes and environment
Source: Morris et al. (2005).
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Table 8
Estimated change in demand for agricultural commodities to be met from domestic sources for a Business as Usual (BAU) and four contrasting governance and social value
scenarios for 2050 (2002 = 100).
Scenario
BAU World Market Global Sustainability National Enterprise Local Stewardship
Wheat 117 98 137 142 129
Barley 112 93 113 134 103
Oilseed rape 172 153 212 186 184Sugar beet 80 67 70 134 120
Potatoes 98 82 108 156 146
Peas 38 9 22 124 185
Beans 38 9 22 124 185
Beef 134 119 106 155 135
Dairy (milk) 102 81 104 115 142
Sheep meat 118 140 119 174 119
Pork 130 161 213 180 151
Chicken meat 131 144 151 147 131
Source: Morris et al. (2005).
then mapped out for each scenario. Scenario assumptions were
also developed for the major drivers of demand such as changes
in demographics and income, dietary trends, and demand for bio-
energy.
The resulting estimates of demand for agricultural commoditiesto be met from domestic sources in 2050, inclusive of bio-energy
crops, are shown in Table 8, expressed as a percentage of those for
2002. It is noted that demand for domestic produce is lower under
the BAU and WM scenarios than in others, although details vary,
reflecting the greater proportion of imports.
The analysis provides a number of useful insights. Land use
modelling involving an optimisation process (Annetts and Audsley,
2002) derived commodity prices that are sufficiently attractive to
farmers to balance domestic demand and domestic supply, assum-
ing likely levels of imports for each scenario. As expected, prices
arehigher under scenarioswhichhave thegreatestprotectionfrom
imports anda high degreeof self-sufficiency. Commodityprices for
cereals, oil seeds and sugar beet are generally higher where energy
crops are included in scenarios than when they are not. Quantitiesand prices for protein crops fall as a consequence of competition
from oil seed residues in animal feed markets. Under BAU, because
of increased yields and increased imports, cereal prices fall to 60
per cent of 20022004 prices, and sugar beet prices are more than
halved. For the assumed WM scenario, there is a long-term decline
in most commodity prices in the face of competition from imports.
The GS scenario shows moderate increases in demand for cere-
als and oil seeds relative to the current situation and BAU. As a
consequence, prices are strong, increasing by 50 per cent in the
case of cereals. The demand for oilseed rape cannot be met from
domestic sources. Under NE, there is strong demand for a broad
range of commodities to be met from domestic sources. Under LS,
prices are high because of persistent supply deficits in cereals and
oil seeds, mainly attributable to low yields. It is likely there wouldbe pressure to increase yields or imports.
These possible futures have major implications for land use.
Fig. 10 shows the proportion of total potentially suitable land that
is used for intensive farming under the future scenarios for 2050
compared with the current (2002) case (Fig. 10 includes energy
cropping). Land requirements vary between scenarios. Land use
declines as a percentage of current land use under WM, BAU and
NE.It falls to65 percentof current useunderthe WMscenario,with
the greatest release of land in areas currently dominated by cereal
production and grassland for dairying. However, there is insuffi-
cient land to meet the demand for agricultural commodities under
GS and LS, partly because of high demand for energy crops under
GS, and the relatively low yields under LS. Pressure on land in the
lowlands puts pressure on the uplands, which deliver that part of
domestic demandfor livestock products that is notmet by thelow-
land sector. Stocking rates in the uplands typically fall by 3050
per cent in some regions under scenarios such as WM, which also
resultin a release of lowland farmland.Under LS,however, a short-
age of capacity in the lowlands increases pressure on the uplandsand leads to a theoretical doubling of upland stocking rates.
The results of this horizon-scanning exercise must be treated
with caution. But they show how future land use and the inten-
sity of land management could vary with changes in national and
global circumstances thataffect the demand for,and supply of, agri-
cultural products, as well as the other services provided by land.
Recent policy changes suggest a move towards the Global Sus-
tainability scenario, which promotes internationally competitive
agriculture which has a commitment to the protection of the envi-
ronment, as well as to vulnerable rural communities. With high
international prices for food, and an increase in domestic biofuel
production, this scenario suggests a continuedhigh demandfor the
use of land for farming in the UK.
Other views on future land use
There are a limited number of studies that project the pat-
tern of future UK agricultural land use. Centre for Rural Economics
Research (2004) used literature review and expert judgement to
estimate the likely changes in agricultural land use across England
and Wales to 2015 under a Business as Usual Scenario but allowing
for the Agenda 2000 reforms. Broadly it predicted that the area of
agricultural land would decline by 3 per cent in England and Wales
Fig. 10. Effect of Business as Usual (BAU) and four other social and governance
scenariosWorld Markets(WM), NationalEnterprise(NE), Global Sustainability (GS)
andLocalStewardship(LS)on theproportionof lowlandagricultural landin England
and Wales required for agricultural production in 2050 (after Morris et al., 2005).
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between 2002 and 2015. Within this, there would be a 10 and 2
per cent reduction of temporary and permanentgrassland, respec-
tively. Theagricultural area is projectedto decrease over theperiod
in all regions, but most quickly in the South East (5 per cent) and
Eastern regions (3 per cent) and slowest in the North East (2 per
cent) and Yorkshire and Humber (2.5 per cent).
The same reportpredicted a reductionin outputfrom most live-
stock sectors. The beef herd was reduced by 15 per cent between2002 and 2015, and dairy production declined by 20 per cent over
the period. Pig and sheep numbers were down over the period by
10 and 6 per cent, respectively. Only poultry numbers were pro-
jected to increase, by 8 per cent. In terms of crops, wheat and oats
production were projected to increase by 11 and 2 per cent, with
all other cereals remaining stable across the period. The area of
protein crops was predicted to remain constant. Potato outputwas
projected to decrease by 10 per cent while oilseed rape and maize
output were projected to increase by 15 and 30 per cent. There
was a projected fall in the output of most horticultural crops by 20
per cent over the period, with field vegetable output 19 per cent
down and fruit down by 20 per cent. Farm woodland is projected
to increase by 17 per cent.
Other projections of the long-term land use implications of
agricultural change have been made at a European scale. These
have mostly been scenario-based studies, which have attempted
to project possible land use patterns under different trajectories
of socio-economic and environmental development. Several stud-
ies have used the SRES scenarios (similar to those described in
Table 6), which include a set of qualitative descriptors devel-
oped by the IPCC (2001). Rounsevell et al. (2005) and Ewart et
al. (2005) both used these scenarios in combination with a sim-
ple supply/demand model which calculates land use change given
relative changes in the demand for agricultural commodities and
the productivity of agriculture. This approach was based on a set
of assumptions regarding climate change, economic development
and agricultural technologyadvancement.The model findings from
Ewart et al. (2005) predicted that at the EU level, increases in pro-
ductivitywouldoutstripgrowth in demand. Based on these results,Rounsevell et al. (2005) projected that large areas of land would be
taken outof agriculturalproduction,with surplus land moving into
urban, forestry and recreational uses. They view this as being con-
sistent with previous land use trends, where, even with subsidies,
the area of agricultural land in Europe decreased by 13 per cent
between 1960 and 2000.
Studies by Meijl et al. (2006) and Eickhout et al. (2007) use the
GTAP econometric model to determine land use change across the
EU under the SRES scenarios. They found that the area of arable
land decreased under scenarios depicting liberalised agriculture.
This area remained stable over the period where CAP offered some
protection to agricultural production. Land moves from arable
to livestock production in the liberalised scenarios, as demand
fromdevelopingcountries incentivisesthe production of meat. Thestudy concluded that the loss of agricultural land would be minor,
although there would be a relative shift in the profitability of some
sectors. Arable land could be used for biofuel production, main-
taining livelihoods in this sector, while liberalisation could cause a
collapse in the EU sugar sector.
A modelling exercise by Verburg et al. (2006) used the SRES
scenarios to predict land use change, this time for the period
20002030. They predicted a high level of abandonment of agri-
cultural land in the future, ranging from 2.5 to 13 per cent of the
agricultural area of the EU-15 in 2000. This abandonment was
more pronounced for the scenarios where agriculture is exposed
to a liberalised world market. This loss would be more pronounced
near large urban conurbations, where there is pressure for urban
growth.
The general findings from this range of forecasting studies
are that land in the UK will continue to move out of agricul-
ture, because of demands for other uses or because some types
of farming are no longer viable. However, this outlook depends on
demands from the global market and the viability of farming. Most
horizon-scanning studies, conducted before the global food price
spikes of 20072008, predicted some degree of agricultural land
abandonment in the UK and EU under a liberalised world market
regime, in response to falling real prices for raw food. But they
also recognise that higher commodity prices might arise, caused
by strong global demand for food and biofuels, and possible con-
straints on some typesof intensivefarming.Under such conditions,
there could be strong demand for agricultural land in the UK, pro-
ducing for domestic needs or for export. As we mentioned above,
more recent FAO/OECD forecasts predict strengthening food and
bio-energy prices over the next 15 years or so. These could pro-
vide sufficient incentives for UK farmers, especially those with
comparative advantage in relatively large scale, intensive farming
systems.
Conclusions
This review has argued that future land use in the UK is likely
to be shaped by two main forces: agricultural and environmental
policy and the market for agricultural and food products. There
may in future be a clearer distinction between agricultural policy
and rural environment policy.
It seems likely that future policy will be mainly directed to non-
market issues of natural resource and environmental protection
and the provision of environmental services. Future food produc-
tion and its associated land use pattern will be largely determined
by economic forces operating in the food market and the price
signals they send. Given reform of the CAP and the decoupling of
support fromfarm production, additional foodproduction in the UK
and elsewhere in Europe will probably be stimulated by the mar-
ketrather than by policy. In this respect, EU farmers will respond tochanges in product prices, input prices and profitability opportu-
nities, and the aggregate impact of their behaviour will determine
whether crop and livestock outputs increase, fall or remain con-
stant.
Policy will primarily be directed to environmental impacts,
including the need to meet demanding targets for improved water
quality, atmospheric pollution containment and biodiversity. The
key contemporary concerns of climate change, sustainability,
maintenance of the natural resource base and future food secu-
rity should be seen in this context. Food security, self-sufficiency
and import penetration will be driven by forces operating in
global food and agricultural markets. Environmental targets will
be achieved by largely non-market, EU and UK government pol-
icy.Policywillalsoaffectlanduse viathe technologiesusedin future
agricultural production (see Burgess and Morris, in press). Future
farming will be determined in part by technology which, in turn,
depends upon Research and Development (R&D). Investment in
R&D will continue to be made in both the public and private sec-
tors. Theformer is mainly drivenby publicinterestin topicssuch as
environmental protection, food quality and food safety, and the lat-
ter by business opportunities.Decisions madetoday in private- and
publicly-funded research organisations have an important influ-
ence on the technologies which will be available to farmers in the
future.
It will probably continue to be a valid use of public funds to
maintain and develop the knowledge and technological capacity
that UK agriculture needs to cope with climate changeor food secu-
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A. Angus et al. / Land Use Policy 26S (2009) S230S242 S241
rity. For example, the permissible roles and regulation of GM crops
and of pesticide use could have important impacts on land use (see
Burgess and Morris, in press).
A range of plausiblefutures each have their ownimplications for
the role of agriculture and rural land management. Much depends
on a combination of UK national demographic and economic fac-
tors, and on global conditions as they shape the incentives to
farmers in the UK. It seems likely that over the next 50 years, the
UKs land area will be required to deliver an increasingly diverse
range of private and public goods to meet growing human needs
and aspirations. This will require a balance of policy-driven goals
and market-driven forces. In particular it will require a much
improved understanding of the trade-offs between foodproduction
and environmental goals, and of the institutional arrangements
required to achieve a balance of economic, social and environmen-
tal outcomes.
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